Does advertising pay back?
Measure payback using contribution profit before advertising, not platform-reported revenue.
Advertising pays back when attributed contribution profit exceeds ad spend. ROMI = (contribution − spend) ÷ spend; ROMI of 0% means the budget was recovered with no profit.
What to consider
- Contribution is after variable costs and taxes on the sale.
- Revenue-based ROAS alone does not show whether advertising pays back.
- Negative ROMI is a measured loss, not an error.
What stays the same across scenarios
- Contribution and ad spend for the same period.
- Choose an attribution method explicitly.
What changes or is assumed
- Attributed contribution excludes fixed costs.
- One-time test expenses are not separated.
Calculation steps
- Add contribution before advertising from attributed sales.
- Compare it with advertising spend for the same period.
- Review ROMI and resulting profit or loss.
Build the calculation in a calculator
Illustrative example: Open with an example: contribution ₽180,000, ad spend ₽120,000
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Editorial team: MARKMA Editorial Team. Reviewed: .